Buy a cloud data miningDwain Ross 08 / April / 21 Visitors: 131
It is getting increasingly more difficult to mine. Cloud mining allows users to extract potentially useful information from raw data and mine bitcoins or alternative crypto currencies without handling the equipment on their own. Most often, cloud mining services are popular among people from places with costly electricity plans, which raises difficulties in terms of build mining farms independently. We will consider all aspects and subtleties that you need to know for successful work with cloud based mining in detail.
How does cloud mining work
Cloud mining services lease installed, configured and already operating equipment for mining taking care of maintenance of this equipment. In other words, cloud mining is when you buy equipment for mining but do not get it physically. The cloud mining service, which you paid for the equipment, installs it and sets it up for work (somewhere in their data centers) and you practically do not need to do anything else. The only things you need to do are sign up for a cloud mining service and buy power supply. After that, the purchased power supply will bring you revenue in the form of a crypto currency.
Having read the information above, why doesn't everybody use cloud mining if it is so convenient and easy? This is because cloud data mining has not only advantages but also drawbacks. Let's look at the main ones - pros of cloud mining:
· It's easy to understand how to start cloud mining. You do not need any special knowledge or skills. Simply register on the cloud mining service, pay them money and start earning income in the form of cryptocurrency.
· Availability - you buy any "share" of equipment for a chosen amount of money. It can be as little as $1 and $10 or as much as $100. If you need to buy cloud mining equipment entirely on your own for ordinary mining (and it usually costs more than $300), with cloud mining you can buy any part of equipment and receive income proportional to the part you bought.
Cons of cloud mining:
· Less profit - of course, the cloud services will not operate at a loss so they sell power supply with addition to price so the money invested in the cloud mining starts paying off slower than if you constructed the farm for mining yourself.
· The equipment you paid for does not belong to you – you are just borrowing it the service provider. If this service provider closes or anything happens to it, they will leave the equipment for themselves (although some services allow you to request the dispatch of equipment; meaning, they can send you the equipment by mail if you wish).
· Frauds - as you know, the Internet is full of scammers and there are people who create fake cloud based websites with insincere intentions.
Cloud Mining Risks
To become even more educated on the topic, we should get more into detail of the downsides of cloud data mining. Surely, any person may have the question - what is the catch? Do you pay a certain amount of money to some service and then you receive income from a crypto currency for the rest of your life? Indeed, not everything is so positive and there are risks:
Possibly the main risk is fraud. Approximately 90% of cloud based services are fake. There are financial pyramids posing as a cloud based mining. The principle is - there is a service, which promises huge revenues and rapid crypto currency mining; you invest money and it closes after a few months taking all the depositors' money with it. At the same time, this service looks like a real cloud mining and even pays interest at first. How do you distinguish a real cloud based service from a financial pyramid? There are a lot of ways and you need particular information, to research the website, look up reviews and be sceptic about every promise.
Another risk is associated with a lack of knowledge. In order to use a cloud mining service you need to be aware of how the whole system works. A simple example - you found a real cloud based mining service, figured out how much it will generate with your deposit and come to the conclusion that you get 50% annually. But there is one snag: the complexity of crypto currency mining and its rate is constantly changing so the profitability changes with it. All your calculations may be true only for today but it may well be that the yield of 50% will be 40% in a month, months 30%, in two, etc. and as a result, the money you have invested will be used for nothing. Then where should you invest in order not to lose?
And most importantly - do not forget that this is the Internet and even the most reliable cloud-based mining service can simply disappear at any moment and most likely no one will ever find its owners. Therefore, do not invest in cloud mining that amount of money that you cannot afford to lose.
Best cloud mining services
1. HashFlare - this service has been working and has been paying its clients for more than three years so there are no doubts about its reliability. And most importantly, cloud mining contracts sold on this service are almost always profitable. If you want to learn more about this service, research the reviews on the HashFlare.
2. Genesis Mining is also a very famous cloud based service that has been working for more than three years and has shown itself well. In essence, it is roughly on the level with HashFlare so it is hard to say which of these two services is better.
3. Hashing24 can be spotted in almost any list and rating. It works quite stably and allows you to get a good profit. The website has an online calculator, which can calculate your profits. The company appeared in 2012. However, this service has several disadvantages. The first is that it works only with the SHA-256 algorithm, which means you cannot mine anything except bitcoin. The second drawback is that the website uses the power of third-party data centers, although this does not affect quality or reliability.
There are a few old, proven cloud mining services but, unfortunately, they give too low a profit at the moment and working with them is not worth it.
How to spot an authentic service
A lot has been said about mining fakes but real cloud based services that actually rent equipment, and do not simulate the activity are a bit hard to find. The list of reliable clouded services has been compiled using the following approach. So here is how you can distinguish real cloud based mining from the fake ones - the main parameters to pay attention to are:
· Whether there are bonuses – experts share the opinion that there has never been a real cloud mining service that offers bonuses. A real service can give discounts, offers some sort of deals but they do not have anything to do with bonuses. If a service gives a bonus for registration, then you can almost be 100% sure that this is fake.
· Power supply and users. It is best to invest in large companies that have large capacities. If the power reserve is sufficient and the conditions are good, then there should be a lot of users.
· Multicurrency. Since rates change, it is best if a website allows you to earn different cryptocurrencies.
· Fixed profitability - a cloud mining service will never guarantee you a certain percentage of return because the profitability from mining changes literally every day and no one knows what it will be tomorrow. For that reason, if a service promises you a stable fixed income every day, it raises some questions.
· Evidence - real cloud mining services rent special data centers where they store all their mining equipment and they usually take photos of these data centers to prove that they are not scammers. Services that do not provide any photos or other evidence seem sketchy.
· The service life - at the moment, all real cloud based services known to us have already been working for 2-3 years. If there is a new service, you should treat it with caution.
Cloud Mining with a Bonus
By now you should have realized that if a cloud mining service gives out a registration bonus, then it is likely that this is merely imitation and sooner or later, such a service will disappear with all the depositors' money. But everybody loves freebies so these services that offer bonuses are very popular. You can try it out; sometimes such services allow you to withdraw money. If it works long enough, you can get a profit.
How much can you earn?
If we consider the best reliable cloud mining services: HashFlare and Genesis Mining, then the yield of their contracts is usually from 120% to 200% annually, while contracts typically last for a year. Thus, if the rate and complexity of the crypto currency will not change much, then you will earn roughly from 20% to 100% over the invested money in a year; but your final earnings will depend heavily on the rate of the crypto currency - if it becomes much cheaper during the year, then it is possible you will start bearing losses. Concerning the fake services, then, as has already been said above, it is a game of roulette; it is impossible to predict the revenue: if the website you have invested in will work for a long time, you can make +300% and if it closes quickly, then you can lose all your invested money.